Besides Chop5 Salad Kitchen, to whom else might I pay fees?
Chop5_Salad_Kitchen Franchise · 2024 FDDAnswer from 2024 FDD Document
party suppliers. |
| Type of Fee 1 | AMOUNT 2, 3 | DUE DATE | REMARKS |
|---|---|---|---|
| System Program | Varies (not currently charged) | 10 days after invoice or as otherwise specified | You must participate in any customer loyalty and/or gift card program we establish and pay all associated program contributions and fees we require to implement and administer these programs. These amounts are paid either to us or to a third party we designate. |
| Fees | |||
| Product Purchases | Varies depending on item purchased | 10 days after invoice | We or our affiliate may serve as a System supplier for certain goods or services you must purchase. If this occurs, we will provide you with a price list upon request. |
| New Product or | Cost of testing (up to $2,500 per test) | 10 days after invoice | This covers the costs of testing new products or inspecting new suppliers you propose. |
| Supplier Testing | |||
| Relocation Fee | $5,000 | At time we approve request to relocate | Imposed if we approve your request to relocate your Restaurant. |
| Renewal Fee | $2,000 | At time you sign Renewal Agreement | Imposed if you renew your franchise rights by signing a successor Franchise Agreement. |
| Transfer Fee | [Franchise Agreement] Greater of $4,000 or 10% of then-current standard\ninitial franchise fee [ADA] $15,000 | Before Transfer | You do not pay us a transfer fee for a Permitted Transfer or Minority Interest Transfer. All other Transfers require payment of the transfer fee. |
Source: Item 6 — OTHER FEES (FDD pages 12–17)
What This Means (2024 FDD)
According to Chop5 Salad Kitchen's 2024 Franchise Disclosure Document, franchisees may be required to pay fees to entities other than Chop5 Salad Kitchen itself. Specifically, franchisees may need to pay local suppliers directly for the Local Advertising Commitment. Additionally, if a regional advertising cooperative is established, franchisees may be required to pay cooperative advertising fees directly to that cooperative, although Chop5 Salad Kitchen may collect this fee and remit it on the franchisee's behalf.
Furthermore, the document indicates that franchisees must participate in any customer loyalty and/or gift card programs that Chop5 Salad Kitchen establishes. As part of this participation, franchisees will be responsible for paying all associated program contributions and fees, which may be directed either to Chop5 Salad Kitchen or to a third party designated by them.
Finally, the Technology Fee may involve payments to third-party suppliers. While the Technology Fee is paid to Chop5 Salad Kitchen, the document clarifies that it includes amounts that Chop5 Salad Kitchen collects from franchisees and then remits to these third-party suppliers. However, it explicitly excludes any amounts that the franchisee pays directly to third-party suppliers.